Consider the returns between Southeast Utilities and Precision Instruments for the period 20052014 The summary statistics for these two stocks are as follows Assume, for expositional purposes, we place equal amounts in each stock therefore, the weights are 0 5 and 0 5 Return ( ) Standard deviation ...

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Consider the returns between Southeast Utilities and Precision Instruments for the period 20052014. The summary statistics for

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Consider the returns between Southeast Utilities and Precision Instruments for the period 2005–2014. The summary statistics for these two stocks are as follows:

Return (%) Standard deviation (%) Correlation coefficient Southeast Precision 10.1 16.8 0.29 15.4 27.5

Assume, for expositional purposes, we place equal amounts in each stock; therefore, the weights are 0.5 and 0.5:

o = [w0 + w0 + 2(w)(w) (P2)0102]/ 1/2 =[(0.5) (16.8) + (0.5) (27.5) +2(0.5) (0.5)(0.29) (16.8) (27.5) ]/ =

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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Question Posted: Dec 31, 2023 10:34 AM

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Consider the returns between Southeast Utilities and Precision Instruments for the period 20052014. The summary statistics for

Question:

Return (%) Standard deviation (%) Correlation coefficient Southeast Precision 10.1 16.8 0.29 15.4 27.5

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Investments Analysis And Management

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